Online gambling in the UK has seen some significant changes recently. Players now face a choice between two main types of online casinos: those licensed by the UK Gambling Commission and offshore (also known as non-GamStop) casinos operating outside the GamStop self-exclusion program. Techopedia`s Kane Pepi explains that a casino not on GamStop will come with with fewer restrictions, more diverse offerings, and various payment methods that include cryptocurrencies.
So, what exactly sets these two apart?
Regulatory Framework
UK Casinos
The UK gambling industry operates under the authority of the UK Gambling Commission (UKGC), a regulatory body that established the Gambling Act of 2005. The UKGC has one of the strictest regulations, ensuring operators adhere to the strict standards, enforcing fair play, responsible gambling, and player safety.
Regulated UK casinos are expected to join the GamStop self-exclusion scheme as part of their licensing obligations, allowing players to voluntarily restrict their access to all UK-based gambling platforms. To uphold transparency and comply with regulations effectively in areas such as money laundering (AML), these gambling platforms are required to undergo routine audits.
The UKGC`s Licence Conditions and Codes of Practice (LLCP) outline comprehensive regulations that casinos are required to adhere to with a focus on promoting ethical standards and safeguarding players` interests. The UKGC guidelines aim to ensure a safe online gaming environment that focuses primarily on protecting consumers and ensuring regulatory compliance standards are met by online casinos licensed in the UK.
These strict requirements aim to ensure UK-based casinos maintain a level of trustworthiness and transparency so that players can be assured that these platforms are continuously monitored to ensure fair play.
Non-Gamstop Casinos
Non-gamstop casinos differ from their UK counterparts and often hold licenses from jurisdictions like Curacao, Malta, or Gibraltar. These offshore casinos have their own set of regulations but aren't subject to the same level of oversight as UKGC-licensed casinos. The lack of self-exclusion programs like GamStop allows UK players who've self-excluded via GamStop to use these platforms. AML and KYC compliance guidelines often tend to be relatively relaxed compared to the UKGC`s regulations and prioritise operational flexibility.
Operating outside UK jurisdiction, non-gamstop casinos operate in a legal grey area; while accessible to UK players, they are not required to meet the same regulatory standards enforced by the UKGC. However, as these casinos grow in popularity, they could face future regulatory scrutiny, particularly as the UK government considers tightening its stance on offshore operators catering to UK residents.
Player Protection Measures
UK Casinos
Ensuring the safety of players is a main focus for casinos as they are required by law to enforce thorough protective measures. Key safeguard measures include:
- ● Mandatory affordability checks to prevent excessive gambling
- ● Strict betting limits and cooling-off periods
- ● Comprehensive responsible gambling tools, including deposit limits and self-exclusion options
- ● Rigorous age and identity verification processes.
For these casinos, the verification procedures for age and identity are strict to confirm that players meet the requirements for gambling. These kinds of measures not only support responsible gaming but also deter underage individuals from accessing these services. Casinos focus on providing fair gaming that prioritises consumer well-being by implementing strong protective protocols.
Non-GamStop Casinos
Casinos not on gamstop tend to offer less strict player protection measures that some players see as a benefit. These offshore casinos often have more relaxed player protection measures, which can be both an advantage and a risk for players.
Some characteristics include:
- ● Higher betting limits and fewer restrictions on gameplay
- ● Less comprehensive responsible gambling tools
- ● Potentially less stringent age verification processes
- ● Ability to circumvent self-exclusion measures implemented through GamStop
Since offshore casinos are not required to join GamStop, players who have self-excluded using this program can still visit these platforms without any hassles.
Game Selection and Features
The UKGC mandates that all games offered by casinos must comply with their standards, ensuring fairness and transparency. While this regulatory oversight guarantees a safe gaming environment, it can also severely limit the variety of games available to players.
Licensed UK casinos typically partner with well-established, regulated software providers to offer a reliable gaming experience. These partnerships help ensure that all games meet the required standards and provide players with high-quality, trustworthy options. However, this focus on compliance could potentially result in a more limited game library compared to non-gamestop casinos.
In line with responsible gambling initiatives, certain high-risk game features may be restricted or changed in UK casinos. This could include limitations on volatility levels, frequency of bonus activations, or maximum bet sizes. While these restrictions are designed to protect players, they may also reduce the excitement or potential payouts that appeal to players.
Non-Gamstop Casinos
Offshore casinos typically offer a much wider selection of games, including variations on classics like poker and roulette. They may feature unique gameplay styles and more bonus opportunities. These casinos often partner with a diverse range of software developers, including mainstream providers commonly found at UK sites.
Additionally, many offshore casinos embrace blockchain technology and cryptocurrency, allowing them to offer provably fair games. This innovative approach uses cryptographic algorithms to ensure the fairness and transparency of game outcomes, allowing players to verify the randomness of each gaming outcome.
Bonuses and Promotions
UK-licensed casinos offer bonuses and promotions that are regulated. These typically include welcome bonuses, deposit matches, and free spins. The bonuses are generally more modest in size compared to offshore casinos, with lower maximum amounts and stricter wagering requirements. UK casinos must clearly display all terms and conditions associated with their promotions, ensuring transparency for players.
Common offers include:
- ● Welcome packages with deposit matches (usually 100% up to £100-£200)
- ● Free spins on popular slots (often 10-50 free spins)
- ● Reload bonuses for existing players
- ● Loyalty programs with points-based rewards
- ● Seasonal promotions tied to holidays or events
Non-Gamstop Casinos
Non-GamStop casinos often provide more generous bonuses and promotions, as they operate under less stringent regulations. These can include:
- ● Larger welcome packages (sometimes up to 400% or more of the deposit amount)
- ● Higher numbers of free spins
- ● No deposit bonuses
- ● Cashback offers
- ● More frequent reload bonuses and promotions for regular players
- ● VIP programs with exclusive benefits
Some of these larger bonuses may come with higher wagering requirements or other terms that make them more difficult to convert into withdrawable cash. Players should always carefully read the terms and conditions associated with any bonus offer, regardless of whether it's from UK-licensed or offshore casinos.
Payment Methods
UK-licensed casinos operate under strict financial regulations set by the UKGC. Since April 2020, credit card gambling has been banned, which is a reflection of the commitment to responsible gambling practices. These casinos typically offer a range of traditional payment options familiar to UK players, such as debit cards, e-wallets, and bank transfers. All UK casino operators are not allowed and do not accept cryptocurrencies as a form of payment.
All transactions are subject to thorough anti-money laundering (AML) checks, ensuring the safety and legitimacy of deposits and withdrawals. While these measures enhance security, they may result in slightly longer processing times for transactions.
The emphasis on regulated payment methods aligns with the UKGC's goal of creating a safe and transparent gambling environment. However, this approach does limit the variety of payment options available to players, particularly those interested in using newer financial technologies.
Non-Gamstop Casinos
Offshore casinos often provide a wider range of payment options, including methods not available at UK-licensed sites. These include:
- ● Credit and debit cards
- ● Bank transfers
- ● Cryptocurrencies like Bitcoin, Ethereum, Dogecoin, and some casinos use NFTs
- ● E-wallets like PayPal, Neteller and Skrill
- ● Mobile payments such as Apple Pay and Google Pay
- ● Prepaid options like the PaySafe card
Player Base and Market Share
UK Casinos
Licensed UK casinos maintain a strong presence in the local market, appealing to players who prioritise consumer protection and regulatory oversight. The UK online gambling market is projected to reach £11.01 billion in revenue by 2024, securing its position as the second-largest gambling market globally.
Approximately 27.9% of UK consumers have engaged in online gambling, with the industry anticipating a 7.4% increase in revenues this year. The trust associated with UKGC licensing remains a significant draw for many UK residents, with about 49% of UK online gamblers spending more than £5 on fantasy sports and sports bets per month.
Non-Gamstop Casinos
Offshore casinos are experiencing rapid growth in the UK market. While specific figures for non-GamStop casinos are not readily available, the overall UK online gambling market is expected to see a yearly growth of 3.84% from 2024 to 2028. Since these platforms attract users by offering fewer restrictions and higher betting limits, providing a more flexible gaming experience compared to UKGC-licensed operators. The appeal of non-GamStop casinos is quite clear in the diverse gaming preferences of UK players:
- ● 25% of online gamblers opt for slot machines
- ● 17% choose casino games
- ● 18% prefer bingo
Risks and Challenges
UK Casinos
Operating under strict UKGC regulations does come with its fair share of challenges for UK-based casinos. These include high compliance costs, tax obligations, and advertising restrictions, which can impact player acquisition and retention. As some players shift towards offshore gambling platforms, UK casinos would need to develop innovative strategies to remain competitive while adhering to UKGC standards. Balancing regulatory compliance with market appeal remains an ongoing challenge for these operators.
Non-Gamstop Casinos
Non-GamStop casinos face their own set of risks, primarily coming from regulatory uncertainty in the UK market. Future regulatory changes could potentially limit or prohibit their operations. Additionally, these casinos often encounter difficulties accessing UK banking services and may face legal challenges to their operations. These factors pose ongoing threats to their expansion and long-term sustainability in the UK market.
